Balance Labs Reports $3.59 Million Net Loss in Q3 2025, Appoints New CEO

Balance Labs, Inc. has reported significant financial challenges in its latest 10-Q filing for the third quarter of 2025, revealing a net loss of $3.59 million for the three months ending September 30, 2025, compared to a loss of $192,837 during the same period in 2024. This represents an increase of 1,716% in losses, primarily attributed to expenses related to the issuance of stock to newly appointed CEO Alan Campbell and the recognition of a derivative liability associated with his employment agreement. For the nine months ended September 30, 2025, the company reported a net loss of $3.75 million, up from $410,480 in the prior year, marking a 1,731% increase.

The company's financial position has deteriorated, with total current assets dropping to $53,140,000 as of September 30, 2025, down from $95,575,000 at the end of 2024. Cash and cash equivalents also fell sharply to $4,512,000 from $13,199,000. Balance Labs' total liabilities increased significantly to $8,728,825, up from $5,166,681, largely due to rising accounts payable and accrued expenses. The accumulated deficit has now reached $9,630,533, reflecting ongoing operational losses and financial strain.

In terms of strategic developments, Balance Labs appointed Alan Campbell as CEO on August 22, 2025, succeeding Michael D. Farkas, who remains as Chairman of the Board and President. Campbell's appointment is part of a broader strategy to enhance the company's leadership and operational capabilities. The company has also issued 780,264 shares of common stock to Campbell as part of his compensation package, which is subject to a three-year vesting schedule. This move is expected to align management interests with shareholder value, although it has contributed to the current financial losses.

Operationally, Balance Labs has not generated any revenue during the reported periods, and its business model focuses on providing consulting services to startups and development-stage companies. The company is actively pursuing new client relationships but faces challenges due to a lack of a diversified client base. As of September 30, 2025, the company reported a working capital deficiency of $8,675,685, raising concerns about its ability to continue as a going concern without additional financing. The company plans to seek new capital to sustain operations over the next twelve months, although there is no assurance that such financing will be available on favorable terms.

Looking ahead, Balance Labs aims to implement a marketing campaign to promote its consulting services and is exploring various avenues for raising capital, including equity and debt financing. However, the company acknowledges the substantial risks associated with its current financial condition and the uncertainty surrounding its ability to secure necessary funding. The management's forward-looking statements indicate a cautious approach, emphasizing the need for strategic adjustments to improve cash flow and operational efficiency.